Barings BDC (BBDC) investor relations material

Executive summary

• Net asset value (NAV) per share decreased to $11.02 as of March 31, 2026, from $11.09 at year-end 2025, primarily due to net realized losses and dividend under-earning, partially offset by unrealized appreciation.

• Net investment income for Q1 2026 was $25.9 million ($0.25 per share), with a net increase in net assets from operations of $20.0 million ($0.19 per share).

• The Board declared a Q2 2026 dividend of $0.26 per share, maintaining 12 consecutive quarters of stable regular dividends.

• Investment portfolio at fair value stood at $2.37 billion, with a weighted average yield on performing debt investments of 9.4% and 10.1% on income-producing securities.

• Leadership transition completed with new CEO emphasizing rigorous credit underwriting and portfolio management discipline.

Financial highlights

• Total investment income for Q1 2026 was $60.6 million, down from $68.0 million in Q4 2025 and $64.4 million year-over-year.

• Net realized losses for the quarter were $10.8 million, partially offset by $4.9 million in net unrealized appreciation.

• Net income for Q1 2026 was $20.0 million, or $0.19 per share.

• Total assets were $2.60 billion, with total net assets of $1.15 billion.

• Portfolio turnover ratio was 4.25% annualized for the quarter.

Outlook and guidance

• Management expects current cash, borrowing capacity, and operating cash flows to be adequate for at least the next twelve months.

• Expectation of increased manager dispersion in private credit, with disciplined lenders better positioned.

• Cautious outlook for M&A activity in the next 12 months, with low conversion rates for transactions.

• Portfolio well-positioned to navigate market volatility and deliver consistent risk-adjusted returns.

• Management highlighted continued solid operating performance and resilience of the senior secured portfolio despite market volatility.